“Myslbek is going on the market,” says Zdeněk Hausvater of the building’s long-time owner AEW. Speaking with Hospodářské noviny, he said officially what brokers and investors have been discussing off-record in recent weeks. The 25,000 sqm building whose GLA is divided up roughly of one-third retail and two-thirds offices will be one of the most closely-watched deals of the year. Not just because of the hefty pricetag, which is likely to exceed €100 million. But because it will put to Prague’s central office market to the test.
It’s a premium building after all, forming the very heart of Na Příkopě. Post-Covid, the accepted trend has been that older buildings will have increasing trouble to produce stable revenues, the further they get from the center of town. A geniunely iconic building, Myslbek would clearly make a trophy building for the right buyer. Domestic funds in particular have demonstrated a serious appetite for this type of product. But we’re in the midst of a general repricing at a time when interest rates aren’t going up…but it’s still rather unclear how quickly or far they will come down.
The building has extremely strong visibility and name recognition, in part because of the shopping passage that makes it known even to everyday shoppers. But another reason it’s so well-known is because it’s been around for over 25 years. Potential buyers, or more crucially potential lenders, will be taking a very careful look at Myslbek’s ESG credentials.
Myslbek is one of those buildings that was intensely controversial when first conceived back in the 1990’s, but has since become an essential part of the city’s landscape. It will be fascinating to watch who ends up with the keys.